New Delhi. A major update has come out regarding Dearness Allowance (DA) and Dearness Relief (DR) for central employees and pensioners. There is said to be a possibility of 3 percent increase in DA for July 2026. After this, the existing 60 percent DA may increase to 63 percent. However, the final decision will be taken only after the cabinet approval of the central government.

How was the data obtained from AICPI-IW?

DA is calculated on the basis of 12 month average of AICPI-IW. In June 2026, the index increased from 150.8 to 151.9 points. The average of the data from July 2025 to June 2026 was 148.65 points. Based on the given formula, DA comes to about 63.76 percent, which is considered to be 63 percent in absolute percentage.

There will be a direct impact on salary

If the government approves 3 percent DA increase, then the DA received every month will increase according to the basic salary of the employees. This will have a direct impact on the total salary. In case the new rate becomes effective from July 1, 2026, the difference received from July may also become arrears.

At present the employees are waiting for the official decision of the cabinet. Amidst the discussions on the 8th Pay Commission, this possible increase in DA is considered important for the central employees.